. WORKSHOP de la Présidence du Conseil de l’Union Européenne “Establishing Satellite Accounts for the Social Economy”

Luxembourg, October 14th 2015

The weight of the social economy Rafael Chaves

University of Valencia (Spain)

CIRIEC – INTERNATIONAL www.ulg.ac.be/ciriec

Centre international de recherches et d'information sur l'économie publique, sociale et coopérative

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OUTLINE OF THE PRESENTATION •The CIRIEC’s research on Social Economy •“The Social Economy in the E.Union” •“The Weight of the Social Economy”

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OUTLINE OF THE PRESENTATION •The CIRIEC’s research on Social Economy •“The Social Economy in the E.Union” •“The Weight of the Social Economy”

ry WHO ARE WE AND WE DO

• Network of researchers (national sections, commission, working groups)

• Publications • International scientific conferences • International researches • 1. International working groups • 2. Projects for international institutions

SCIENTIFIC ORGANIZATION OF CIRIEC

INTERNATIONAL SCIENTIFIC COMMITTEE

“General interest”

SCIENTIFIC COMMITTEE “Public Economy”

SCIENTIFIC COMMITTEE “Social & Co-operative

Economy”

PUBLICATIONS OF CIRIEC

1. Scientific journal:

Annals of Public and Cooperative Economy Edited by Blackwell and indexed in Scopus, Econlit and other.

National sections have their own journals.

2. A specialized collection in Peterlang edl:

“Social economy & Public economy”

3. The CIRIEC’s Working Papers

FIELD OF RESEARCH: SOCIAL ECONOMY

Social Economy: Third sector integrated by Private enterprises and activities that are democraticly governed and not for profit - oriented.

An increasing economic field around the world. In Europe it represents more than 14 millions jobs. Recent new atention from the European Commission in the context of the economic crisis.

An increasing scientific research field

MAIN RESEARCH TOPICS 1. Definition and cuantitative research on SE 2. Contribution of the SE to General interest and progress - economic and social development (rural, local, social

capital) - employment - social services, housing.. - financial inclusion, - social innovation (… in the new words: the social and economic impact of

SE) 3. Participative governance of SE, financial and

accountability 4. The SE and the States: public policies, regulation

Research topics of the IWG-Ciriec (1) 1. Concept of the social economy and first economic

panorama: an international perspective Defourny,J. et Monzon,J.L. (dir): (1992): Economie sociale. The third

sector, Bruxelles, De boeck. 2. Evolution of the cooperative principles face to the markets, Monzon,J.L., Spear,R., Thomas,A. Y Zevi,A. (dir) (1996): Cooperatives,

Markets, Cooperative Principles, CIRIEC, Bruxelles. 3. The Social economy face to the crisis of the employment

and the welfare state Defourny J., Favreau L. & Laville J.-L. (dir) (1998): Insertion et nouvelle

économie sociale : un bilan international, Desclée De Brouwer, Paris.

Laville J.-L./Nyssens M. (dir) (2001) Les services sociaux entre associations, Etat et marché. L'aide aux personnes âgées, La Découverte, Paris

Research topics of the IWG-Ciriec (2) 4. Chalenges of the SE groups and cooperative holdings Côté D. (dir) (2001): Les holdings coopératifs. Evolution ou

transformation définitive ? De Boeck Université, Brussels. 5. Corporate governance in SE and the role of managers Chaves,R., Cornforth,C., Schediwy,R. & Spear,R. (eds) (2004):

Governance and management in the Social Economy, special issue, Annals of Public and Co-operative Economics, Vol. 75-1.

6. The Social economy in territories

Recent international researches

Available at: www.uv.es/uidescoop/ciriec

1. CIRIEC (2000): The enterprises and organisations of the third system. A strategic challenge for employment, CIRIEC – DGV European Commission, Liege.

2. CIRIEC (2006): Report of the Social Economy in the European Union, European Social and Economic Committee, Bruxelles.

3. CIRIEC (2006): Manuel d’un Compte Satellite des entreprises de l’économie sociale (Coopératives et Mutuelles), Commission Européenne, Bruxelles.

4. CIRIEC (2008): Evaluation de la représentativité et du role des organisations membres de Cooperatives Europe dans le dialogue social des pays membres de l’Union Européenne, Liege.

5. CIRIEC (2012): The Social Economy in the European Union, European Social and Economic Committee, Bruxelles.

6. CIRIEC (2013): The emergence of the Social Economy in public policies, Peterlang ed.

6. CIRIEC (2014): The Worth of the Social Economy, Peterlang ed, Bruxelles.

7. CIRIEC (2015): The Weight of the Social Economy, Peterlang ed, Bruxelles.

« The emergence of the Social

Economy in Public Policies. An international Analysis »

CIRIEC (ed)

Edited by Rafael Chaves and Danièle Demoustier

Peterlang ed. http://ciriec.ulg.ac.be

AIMS OF THE STUDY: How best develop policies and institutions to exploit this potential? What policies have emerged? Which tools of governments? Why did they emerge in some countries and not in others?

CONTENTS: A general (theoretical) analysis of public policies towards the Social Economy: its key features for its introduction in the policy agenda, objectives, instruments for policy makers to foster the Social Economy and its pattern of evolution, An international comparative analysis at 3 levels: -supra and international approach from a European perspective (examining policies of the European bodies), a South-American one, and a developping countries comparative analysis, - a national approach (France, England, Japan, Spain) - and regional analyses (regions of Basque country –Spain-, PACA –south of France-, Valonie –Belgium-). Conclusions examining the evolution, divergence and convergence of the Social Economy and its integration in public policies.

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OUTLINE OF THE PRESENTATION •The CIRIEC’s research on Social Economy •“The Social Economy in the Eu.Union” •“The Weight of the Social Economy”

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ry Pioneer work in mapping the sector in Europe

• 1990 Defourny & Monzón : Social economy core identity • 1997 Eurostat : Report on the coop, mutualist and

associative sector in Europe

• 2000 CIRIEC DGV-EU : The ‘third system in Europe’

• 2002 Salamon & al. : UN NPI Handbook

• 2006 Barea & Monzón : CIRIEC Coop & mutuals - SE Handbook (Study in Belgium, Spain, Bulgaria, Serbia & M)

• 2008 & 2012 Chaves & Monzón : Social economy in the EU

• 2014 Wilkinson : Social Enterprise in the EU

• And on: TSI, …

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ry Chaves & Monzón (2008 & 2012) “The SE in EU” •Clear empirical evidence of the presence of the SE in all countries

•A similar understanding of its core characteristics

•Different names, different meanings, and different subsets, depending on the country

Bouchard & Rousselière (2015) “The Weight of SE” •Issues of mapping and defining are closely related

•Trade-off between legitimacy (social construction), legibility (to public authorities and society), and cost (data)

BACKGROUND: 2008: CIRIEC-International’s study “The Economie sociale in the European Union” Full Report (English, French, Spanish): http://www.eesc.europa.eu/?i=portal.en.social- economy-category-documents.3167 Summary Report (All official languages of the EU): http://www.eesc.europa.eu/?i=portal.en.social -economy-category-documents.3166

2000: Etude du CIRIEC-International “The entreprises and organizations of the third system (SE) in the European Union”,

European Commission - DGV (15 Countries) (downloadable in: www.uv.es/uidescoop/ciriec)

2012: CIRIEC-International’s study

“The Economie sociale in the European Union”

Jose L. Monzon and Rafael Chaves (dir)

MAIN OBJETIVES OF THE STUDY 1.- To actualize the study carried in 2008 2.- Analyse definitions of the social economy, taking into

account current debates on social enterprises and other 2.- Provide macro-economic data on the social economy in

the 27 Member States and the 2 candidate countries 3.- To analyze the impact of the economic crisis on the

social economy in Europe. 4.- Examine recent national legislation on social economy

METHOD

- Report has been directed and written by the directors: Prof. Dr. José Luis Monzón & Prof. Dr. Rafael Chaves

- Advised by a Committee of Experts (D.Demoustier –France-, Ch.Ciara & A.Zevi –Italy-, M.Huncova –Chequia, R.Spear –U. Kingdom-) - Colaboration of the Scientific Commission of CIRIEC-International - Colaboration of our network of national correspondents - Colaboration of the members of the EESC

- Empirical data based on a Questionnaire ad hoc, information from national experts and secundary sources of information

- Discussion of the work schedule, methodology, intermediary report and proposed final Report

WORKING DEFINITION OF THE SOCIAL ECONOMY: “The set of private, formally-organised enterprises, with autonomy of

decision and freedom of membership, created to meet their members’ needs through the market by producing goods and providing services, insurance and finance, where decision-making and any distribution of profits or surpluses among the members are not directly linked to the capital or fees contributed by each member, each of whom has one vote.

The Social Economy also includes private, formally-organised organisations with autonomy of decision and freedom of membership that produce non-market services for households and whose surpluses, if any, cannot be appropriated by the economic agents that create, control or finance them”

Shared features of the Social Economy: 1) They are private; 2) They are formally-organised; 3) They have autonomy of decision, meaning that they

have full capacity to choose and dismiss their governing bodies and to control all their activities;

4) They have freedom of membership; 5) Any distribution of profits or surpluses among the user

members, should it arise, is not proportional to the capital or to the fees contributed by the members but to their activities or transactions with the organisation.

6) They pursue an economic activity in its own right, to meet the needs of persons, households or families.

7) They are democratic organisations.

RESULTS

Graf. 1. National acceptation of the concept of “Social Economy” and other concepts

Social Economy +

+ Other concepts: Social enterprises, Nonprofit sector, Third sector

España France

Italia

Portugal

Belgique Ireland

Malta Sweeden

Slovenia

Hungary

Osterreich Greece

Letonia

Denmark

Polska

Estonia

The Netherlands

United Kingdom Deutschland

Latva Chequia

Finland

-

Luxembourg

The Social Economy: - not a legal definition, - then it is not a socioeconomic field only composed by Co-operatives, Mutuals, Associations and Foundations….

Table 3.1. Components of the Social Economy, institutional forms

Cooperatives Mutuals Associations Foundations Others

AUSTRIA X X X X X1

BELGIUM X X X X X2

DENMARK X X X X X3

FINLAND X X X X

FRANCE X X X X X4

GERMANY X - X X X5

GREECE X X X X X6

IRELAND X X - - X7

ITALY X X X X X8

LUXEMBOURG X X X X

PORTUGAL X X X X X9

NETHERLANDS X X X X

SPAIN X X X X X10

SWEDEN X X X X

UNITED KINGDOM X X X X

Table 3.2. Components of the Social Economy, Other forms

X1: Social Enterprises

X2 Sociétés à finalité sociale

X3: Social Enterprises

X4: Comités d'entreprise, voluntary social protection

X5: Volunteer services and agencies, social firms of disadvantaged people, alternative enterprises of the womens' and ecological movement, self-help organisations, socio-cultural centres, work integration companies, local exchange and trading systems, neighbourhood and community enterprises

X6: Popular companies

X7: Credit Unions

X8: Volunteering organisations; specific types of associations as associations of Social Promotion and Family Associations; Community Foundations; Non-Governmental Organizations; IPAB: Istituzioni di Pubblica Assistenza e Beneficenza

X9: Misericordias; IPSS (Instituiçoes Particulares de Solidariedade Social)

X10:

Sociedades Laborales, Empresas de Inserción, Centros Especiales de Empleo, Grupos específicos como la ONCE, Sociedades Agrarias de Transformación

X11 Association of Common Benefits

X12 Not-Profit Enterprises

X13 Credit Unions and Social Enterprises

X14 Centres of Socio-Economic Integration

X15 Unitati Autorizate Proteiate (Authorized Protected Units)

X16 Sheltered workshops, social services

The European Social Economy

in figures

EXEMPLE OF NATIONAL FIGURES: THE SOCIAL ECONOMY IN FINLAND

Cooperatives and other similar

accepted forms

Mutual Societies and other similar accepted forms

Associations, foundations and other similar accepted forms

- Agricultural Cooperatives (2010: 32.763 jobs 167.100 members 36 enterprises) - Consumer Cooperatives (2010: 48.082 jobs 2.360.200 members 53 enterprises) - Cooperative Banks (2010: 13.234 jobs 1.338.100 members 251 enterprises) - Worker Cooperatives (2010: 1.500 jobs)

-Mutual Insurance (2010: 8.072 jobs 73 enterprises) -Mutual Saving & Loans (2010: 33 enterprises)

- All entities (2005: 130.000 entities 84.600 jobs) -Social & Health Action Associations (2003: 19.857 jobs 1.364 entities) - Foundations (2003: 21.522 jobs 665 entities)

94.100 jobs 4.384 enterprises

8.500 jobs 106 enterprises

84.600 jobs 130.000 entities

(*) Source: PekkaPättiniemibased on Tiedotustilaisuus

Table 1 (1) Paid employment in Social Economy. European Union (2009-2010)

Country Cooperatives Mutual’s Associa’s TOTAL

Austria 61.999 1.416 170.113 233.528

Belgium 13.547 11.974 437.020 462.541

Denmark 70.757 4.072 120.657 195.486

Finland 94.100 8.500 84.600 187.200

France 320.822 128.710 1.869.012 2.318.544

Germany 830.258 86.497 1.541.829 2.458.584

Greece 14.983 1.140 101.000 117.123

Ireland 43.328 650 54.757 98.735

Italy 1.128.381 n.a. 1.099.629 2.228.010

Luxembourg 1.933 n.a. 14.181 16.114

Portugal 51.391 5.500 194.207 251.098

Netherlands 184.053 2.860 669.121 856.054

Spain 646.397 8.700 588.056 1.243.153

Sweden 176.816 15.825 314.568 507.209

United Kingdom 236.000 50.000 1.347.000 1.633.000

EU-15 3.874.765 325.844 8.605.750 12.806.379

New Member States 673.629 36.788 611.338 1.321.755

TOTAL EU-27 4.548.394 362.632 9.217.088 14.128.134

Country Cooperatives Mutual’s Associa’s TOTAL

Bulgaria 41.300 n.a. 80.000 121.300

Cyprus 5.067 n.a. n.a. 5.067

Czech Republic 58.178 5.679 96.229 160.086

Estonia 9.850 n.a. 28.000 37.850

Hungary 85.682 6.676 85.852 178.210

Latvia 440 n.a. n.a. 440

Lithuania 8.971 n.a. n.a. 8.971

Malta 250 n.a. 1.427 1.677

Poland 400.000 2.800 190.000 592.800

Romania 34.373 18.999 109.982 163.354

Slovakia 26.090 2.158 16.658 44.906

Slovenia 3.428 476 3.190 7.094

Acceding and Candidate Countries

Croatia 3.565 1.569 3.950 9.084

Iceland n.a. 221 n.a. 221

EU-15 3.874.765 325.844 8.605.750 12.806.379

New Member States 673.629 36.788 611.338 1.321.755

TOTAL EU-27 4.548.394 362.632 9.217.088 14.128.134

Table 1 (2) Paid employment in Social Economy. European Union (2009-2010)

Table 2 (1) Paid employment in the Social Economy compared to total paid employment. EU (2009-2010) in thousands

Country Employment in SE Total Employment %

Austria 233.528 4,096.300 5.70%

Belgium 462.540 4,488.700 10.30%

Denmark 195.490 2,706.100 7.22%

Finland 187.200 2,447.500 7.65%

France 2,318.540 25,692.300 9.02%

Germany 2,458.580 38,737.800 6.35%

Greece 117.120 4,388.600 2.67%

Ireland 98.740 1,847.800 5.34%

Italy 2,228.010 22,872.300 9.74%

Luxembourg 16.110 220.800 7.30%

Portugal 251.100 4,978.200 5.04%

Netherlands 856.050 8,370.200 10.23%

Spain 1,243.150 18,456.500 6.74%

Sweden 507.210 4,545.800 11.16%

United Kingdom 1,633.000 28,941.500 5.64%

TOTAL EU-15 12,806.370 172,790.400 7.41%

TOTAL EU-27 14,128.134 216,397.800 6.53%

Country Employment in SE Total Employment %

Bulgaria 121.300 3,052.800 3.97%

Cyprus 5.070 385.100 1.32%

Czech Republic 160.090 4,885.200 3.28%

Estonia 37.850 570.900 6.63%

Hungary 178.210 3,781.200 4.71%

Latvia 0.440 940.900 0.05%

Lithuania 8.970 1,343.700 0.67%

Malta 1.680 164.200 1.02%

Poland 592.800 15,960.500 3.71%

Romania 163.350 9,239.400 1.77%

Slovakia 44.910 2,317.500 1.94%

Slovenia 7.090 966.000 0.73%

Acceding and Candidate Countries

Croatia 9.080 1,541.20 0.59%

Iceland 0.220 165.800 0.13%

TOTAL EU-27 14,128.134 216.397.800 6.53%

Table 2. (2) Paid employment in the Social Economy compared to total paid employment. EU (2009-2010) in thousands

Legal recognition of the Social Economy /Enterprise Status

Country Law Name of the Law / Project of Law

Spain

YES Social economy (2011)

Greece

YES Social economy and social enterprises (2011)

Belgium (Wallonie, Bruxelles, Flandres)

YES Social economy (2008, 2012, Décret régional)

Finland YES Social enterprise (2003)

Lithuania YES Social enterprise (2004)

Italy YES Social enterprise (2005)

Slovenia YES Social enterprise (2011)

Portugal YES Social economy (2013)

Poland Bill Social economy (2012)

Netherlands Bill Social enterprises (2012)

Romanía Bill Social enterprises (2012)

France YES Social and solidary economy (2014)

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OUTLINE OF THE PRESENTATION •The CIRIEC’s research on Social Economy •“The Social Economy in the E.Union” •“The Weight of the Social Economy”

« The worth of the social

economy. An international perspective »

CIRIEC (ed) Edited by Marie J. Bouchard

Peterlang ed. http://ciriec.ulg.ac.be

An international analysis of the evaluation of the Social Economy – in nowadays words: the asessment of organizations and their impact

« The weight of the social economy.

An international perspective »

CIRIEC (ed) Edited by Marie J. Bouchard &

Damien Rousselière Peterlang ed.

http://ciriec.ulg.ac.be

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The Weight of the Social Economy, an International Perspective, Brussels, Peter Lang, 2015

23 authors

10 countries in Europe, North and South America, Asia

Part 1 – Methodological concerns in producing statistics on the social economy

Part 2 – Lessons learned from specific studies

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ry Part 1 1.The pioneer work of CIRIEC Spain (Monzón).. Since 1996!

2.Indicators and what they show (Artis, Bouchard & Rousselière)

3.Identifying the entities (Bouchard, Cruz Fihlo & St-Denis)

4.Classifying the entities (Archambault)

5.Harmonizing at the international level (Salamon, Sokolowski & Haddock)

6.Accounting for what the SE produces (Mertens & Marée)

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ry Part 2 7.The CIRIEC satellite account in Belgium (Fecher & Ben Sedrine-Lejeune)

8.Stakeholders participation France (Demoustier & alii)

9.Snowballing the informal in Brazil (Gaiger)

10.Institutional divide and lack of visibility and in Japan (Kurimoto)

11.Measuring impacts of coops (Uzea & Duguid)

12.Hybridity and boundary cases (Spear)

Existing approaches • Satellite accounts manuals

– NPO – Johns Hopkins, United Nations – Coop and mutual societies – CIRIEC, European Commission

• European Surveys – CIRIEC – Social business, social enterprise

• National observatories – France – Observatoire national de l’économie sociale et solidaire – Brazil – Mapping of solidarity--based enterprises

• Data analysis of national surveys – Employment or volunteering – Demography

• Sector or subsector survey – Cooperatives – Emerging social enterprises

Working Group Methodology

• Discuss a range of statistical studies • Analyse not so much their technical aspects but

rather their contributions and limitations to knowledge on the SE

• Example of issues: – Qualification of entities – Classification – Indicators – Social impacts

WHY IS IT IMPORTANT TO PRODUCE STATS ON THE SE?

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ry Why is it important to produce statistics on the social economy? • SE is present in almost all sectors of the economy and

socioeconomic contexts

• Economic contribution in standard terms (employment, GDP) of the SE > overall contribution to economy and to society.

• What data shows, for example :

– Countercyclical entrepreneurship

– High survival rate in periods of turbulence

– Crowding in effects of public funding

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ry How are statistics on the SE produced? • Identifying entities by applying successive filters: economic

and industrial sectors -> legal status -> qualification criteria

• Classifying activities: adjustments to standard industrial classifications

• Measuring the contribution of the SE: a fully-fledged economic actor

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ry Challenges about producing of stats on the SE • Not yet an institutionalized and harmonized definition

– No institutional marker of the SE (some exceptions such as France)

– Legal definitions vary from one country to another

– Naming the SE varies from one country to another and, in countries where there is no SE legislation, from one social actor to another

– This was the case not so long ago with nowadays seemingly taken-for-granted statistical categories such as SMEs

• Measuring the production – Standard measuring tools only show the tip of the iceberg

– Distribution and spill-over effects, externalities

– True for any economic agent, but the SE specializes in these

HOW MIGHT WE BETTER UNDERSTAND THE SE IN THE FUTURE?

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ry • Three general findings

– Methods differ from one country to another, but each sheds light on an important aspect

– An important economic actor, but part of what the SE produces remains in the shadow

– Measurement helps being noticed, but it also transforms the definition of the SE

Rebound effect between definition, measurement and public recognition of the SE

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ry Some issues:

– Population: either too large, including entities that are not SE, or too ad hoc and changing over time

– Frontiers with public and private sector: a moving target

– Need for new indicators to better detect the SE in national accounts

– Need for a better assessment of non-market aspects of what the SE produces

– International comparability vs. local legitimacy

Cost-benefit ratio of the methodologies based on the targeted objectives

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ry To conclude: •The production of statistics is as much a scientific or technical question as it is a political one (as the etymology of the word statistik reveals)

•Statistics is not the only way to show for the importance of the SE: “numbers do not speak for themselves” (Salamon)

•This book does not aim to be exhaustive

•A starting point for future research!

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Thank you!

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Thank you for your attention